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Question 1 (12 Points) En March 1, 2019, Fabian, Inc. issued a 5 year $300,000 10% bond at face. This bond pays interest semi- annually

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Question 1 (12 Points) En March 1, 2019, Fabian, Inc. issued a 5 year $300,000 10% bond at face. This bond pays interest semi- annually on March 1 and September 1 each year. Required a. Prepare the necessary entry to record the issuance of the bond on March, 2019. b. Prepare the entry to record the first interest payment September 1, 2019. c. Prepare the required adjusting entry at December 31, 2019. Question 2 (20 Points) On January 1, 2020, XYZ made the decision to issue $500,000 of its 10% five year bond. The bond pays interest semi-annually on January 1 and July 1 each year. On January 1, 2020 the market rate of the bond was 8% Required: a. Calculate the annual interest payment. b. Calculate the present value of the face amount of the bond. c. Calculate the present value of the interest payments. d. Determine the proceeds realized from the issuance of the bond e. Calculate the amount of any premiums/discounts. f. Prepare the entry necessary to record the issuance of the bond. Question 3-(12. Points) On December 31, 2019, immediately after making its interest payment, Marion, Inc. called its outstanding $400,000 10% bond at 101. On this date, the bond had unamortized premium of $2,000. Required a. Determine the carry value of the bond at 12/31/19. b. Determine the gain/loss to be recognized on the retirement of the bond at 12/31/19. c. Prepare the entry to record the retirement of the bond at 12/31/19. Question 4 - (16 Points) Quick Silver, Inc. issued its ten year, $100,000 8% bond on 1/1/20 at 95. Quick Silver's bond pays interest semi-annually on January 1 and July 1. Required a. Prepare the amortization schedule for Quick Silver through January 1, 2022 assuming all discounts and premiums are amortized on a straight-line basis. b. Prepare the required journal entry at 7/1/20. c. Calculate the total interest expense reported in 2020

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